SUPPOR TING ST AT EMENTFOR THE RENEW ABLE FUE LS ST

ANDARD (RFS2) PROGRAM (RENEW AL) A. JUSTIFICA

TI ON 1. Id entification of the Information Collection 1( a) Ti tle: Renewable Fuels Standard (RFS2) Program , EP A IC R No. 2380.02 , OMB Control Number 2060
- 0637. 1(b ) Short characterization: The Energy Policy Act (EP Act) of 2005 amended the Clean Air Act, section 21 1(o), and required the existing RFS program. The existing RFS program is referred to in this supporting statement as "RFS1". The RFS1 program star ted in 2006 and was covered by EP A IC R No. 2242.02, OMB Control Number 2060
- 0600 is now discontinued
. Wi th the new requirements in the RFS program now RFS2, all supporting information and notices will be addressed under EP A ICR No. 2380.02 , OMB Control Number 2060
- 0637. P lease refer to “Regulation of Fuels and Fuel Additives: Renewable Fuel Standard Program

– Notice of Proposed Rulemaking” and “Regulation of Fuels and Fuel Additives: Renewable Fuel Standard Program

– Final Rule” (both available in docket number EP A
- HQ
- OAR
- 2005
- 0161) for a detailed discussion of the RFS1 program. The Energy Independence and Security Act of 2007 (EI SA) further amend ed the Clean Air Act, sectio n 21 1(o), and required new regulations for renewable fuels. The new er RFS program is referred to in this supporting statement as "RFS2." Under RFS2, the volume requirement and ty

pes of renewable fuels are expanded; non
- road uses are included (RFS1 onl y aff ected motor vehicle fuel); there are additional ty pes of waivers and special pr ovisions for renewable fuel ty

pes; and EP

A has implement ed an EP A Moderat ed Tr ansaction Sy stem (EMTS) for RINs. Additional parties will be required to register, keep records, and report. Please refer to the Final Rule (available in docket number EP A
- HQ
- O AR
- 2005
- 0161) for a detailed discussion of the RFS2 program. This supporting statement provides tables that break down reporting items by party (e.g. producer, importer, refiner, etc.) and the cost related to their reporting activity . For compliance purposes, under RFS2, volumes of renewable fuel are identified through the use of renewable identification numbers (RI Ns) that are initially

generated b y the producer of the renewable fuel. However, there are additional ty pes of RINs and the volume of RINs traded is expected to be great.2. Need For, and Use of, the Collection

2(a) Authority

for the Collection Sections 1 14 and 208 of the Clean Air Act (CAA), 42 U.S.C. §§ 7414 and 7542, authorize EP A to require recordkeeping and reporting regarding enforcement of the provisions of Title II of the CAA. 2(b ) Practical Utility

/Uses of the Data The recordkeep ing and reporting requirements of this regulation will allow EP A to monitor compliance with the RFS program.
3. Non
- duplication, Consultation, and other Collection Criteria 3( a) Non
- duplication Ef forts have been made to eliminate duplication in thi s information collection . The information collected is considered CBI and unique to the closed DCFUEL database. EP

A has provided instructions in PDF in which the parties submit data in the Unified Report Form (XL S) to the Agency ’s Central Data Exchange (C DX). CDX also allows for updating and corrections to individual accounts. The data re late s to individual fuel volume by faci lity and are not available from other sources
. 3(b ) Public Notice EP A sought comment on reporting requirements via the Federal R egister on November 20, 2012 (77 FR 6962 0). EP

A received no public comments. 3(c) Consultations EP A has consulted with two parties , Mr
. Ti m Hogan of the American Fuel and Petrochemical Manufactures , who can be contacted on (202)
- 457
- 0480 , and Mr
. Bob S c hafer of The National Biodiesel Board (NBB), who can be reached on 202
- 737
- 8801
. Mr. Schafer did not respond. Mr
. Ti m Hogan reviewed the ICR as it relates to the obligated part ies and found that the tables were not clear. Changes were made for better anal ys is of part y burden
. 3( d) Ef fects of Less Frequent Data Collection Wehave designed the reporting schedule to coincide with existing reporting deadlines applicable to man y of the same parties under such programs as RFG (Reformulated G asoline) and anti
- dumping and diesel fuel. Less frequent collection of data would make it impossible to carry out the provisions of the CAA and EISA.3( e ) General Guidelines

This rule does not exceed any of the OMB guidelines. 3( f ) Confidentiality Weinform respondents that they may assert claims of business confidentiality (CBI) for information they

submit. Actual RINs should not be treated as confidential business information under RFS2, as they

are necessary

identifiers to accompan y renewable fuels. Any information claimed as confidential will be treated in accordance with 40 CFR Part 2 and established Agency procedures. Information that is received without a claim of confidentiality may be made available to the public without further notice to the submitter under 40 CFR § 2.203. 3( g ) Sensitive Information This information collection does not require submission of any sensitive information. 4. The Respondents and the Information Requested 4(a) Respondents with NA IC S / SI C Codes The respondents to this information collection fall into the following general industry categories: petroleum refineries (3241 10/291 1), ethyl alcohol manufacturers (325193/2869), other basic organic chemical manufacturing (3251 10/2869), ch emical and allied products merchant wholesalers (426990/5169), petroleum bulk stations and terminals (422710/5171), petroleum and petroleum products merchant wholesalers (422720/5172), and other fuel dealers (454319/5989). Using the terminology

associat ed with the RFS2 Rule, we have assumed the following classes of party

, which are covered by

this supporting statement.

 Producers of renewable fuels  Importers  Obligated Parties  Parties who own RINs (including foreign RIN owners) 4(b) In formation Requested The respondents are subject to this collection to demonstrate compliance with the RFS Program . For this purpose, the respondents are required to report to EP A , via the Agency ’s Central Data Exchange (CDX) , their fuel volumes identified through the use of renewable identification numbers (RI Ns). The respondents are involved in the initial generation of renewable fuel t o be introduced in commerce. Additional requested information to be reportedcome from producers and importers i n the form of atte st engagements reports and new pathway

petition submissions.

(i) Data Items Record Retention for this collection is five years f rom the d ate the records were created
. Records related to RIN transactions are to be kept five years from the transaction date. Records can be keep either electronically or on paper. On request by EP A records must be made available ; for electronic records , this include s equipment or software need ed to read the electronic records. If requested b y EP

A, electronic records shall be converted to paper documents. The ty pes of records for retention under this collection are as follows: **Recordkeeping: Common Requirements for All Parties**

 Product T

r ansfer Documents (PTDs) for an y Activity as a T ransferor/Transferee of ownership of Renewable Fuel

 Copies of Reports Submitted to EP A records related to RI

N T ransactions

 List of RINS Owned, Purchased, Sold, or Retired

 Parties Involved in Each T ransaction

– Tr ansferor, Tr ansferee, and any Broker or Agent

 Tr ansaction Date

 Additional Information Related to Details of the T ransaction and its Te rm s

 Any Parties Other Than Renewable Producers and Obligated Parties

 Obligated Parties should retain PTDs associated wi th transactions **Recordkeeping: Renewable Pr oducer/Importer Specifics** 

**– 1** 

 Records Related to the Generation and Assignment of RI Ns b y Facility

 Batch V

olume, Batch No., RI

N, Renewable Ty

pe, Production/Import Date, Lab Results, Additional info related to RI N Generation

 Records Related to the Production/Importation of Neat Motor Fuel and its Use

 Renewable Fuel Designated by the Producer or Importer of Motor Ve hicle Fuel **Recordkeeping: Renewable Producer/Importer Specifics**

**– 2**  **, Verifiable Records**

 The amount and t ype of fossil fuel and waste material
- derived fuel used in producing on
site thermal energy

dedicated to the production of ethanol at plants producing cellulosic biomass ethanol through the displacement of 90 percent or more of the fossil fuel norma lly used in the production of ethanol

 The amount and t ype of feedstocks used in producing cellulosic biomass ethanol

 The equivalent amount of fossil fuel (based on reasonable estimates) associated with the use of off
- site generated waste heat that is used in the production of ethanol at plants producing cellulosic biomass ethanol through the displacement of 90 percent or more of the fossil fuel normally

used in the production of ethanol

 The plot plan and process flow diagram for plants producing cellulosic biomass and waste derived ethanol The independent third party verification required under 40 CFR § 80.1155 for producers cellulosic biomass ethanol and waste derived ethanol **Recordkeeping: Obligated Parties & Renewable Exporters**

 Records Related to the Use of RINS (by Facility if Applicable) for Compliance

 Methods and Variables Used to Calculate the RVO

 List of RINs Used to Demonstrate Compliance

 Additional Information Related to Details of RIN Use for compliance

(ii) Respondent Activities All respon dents must be registered in the DCFUEL application to obtain a valid company number to sign up in CDX . In CDX parties will submi t facility registration corrections and updates and report fuel volumes used for buying and selling RI NS in the EMTS
. T he information submitted to EP A during a compan y ’s initial registration defines its roles, responsibilities and participat ion in the EMTS environment. Producers and importers are responsible for financing a yearl y attest engagement or audit to verify their fa cilities
. In this collection producers and importers may also submit new pathway petitions for EP

A approval.
5. The Information Collected
- Agency A ctivities, Collection Methodology , and Information Management 5(a) Agency

A ctivities

 All reports an d registrations will be reviewed b y EP A for completeness and for potential violations.

 Potential violations will be referred to enforcement personnel.

 Registration numbers will be issued for new registrants.

 Contacting reporting parties if there is a problem with their submission. 5(b ) Collection and Methodology and Management EP A will to continue to receive all reports, registrations, initial registrations and updates. W e anticipate receiving data in a simplified and secure fashion via the Agency 's electronic Central Data Exchange (CDX). Information claimed as CBI will be stored in appropriately controlled areas. EPA will p rovide Guidance Documents, Report Instructions and Report Templates on http://www.epa.gov/otaq/regs/fuels/forms.htm
. 5( c ) S mall Entity

Flexibility P rovisions The flexibility

provisions that are available to small entities are found in 40 CFR § 80.1441 and § 80.1442 . These refiners have less than 1,500 employees corporate - wide and corporate averagecrude oil capacit y less than or equal to 1 55,000 barrels per calendar day
. There are onl y six refiners that meet this definition and are registered in DCFUEL under the RFS2 program. 5( d) Collection Schedule Registrations are received on a rolling basis. Updates may be sent in at any

time after initial registration. New parties may enter the regulated industry at any time, triggering registration requirements. Petitions for new renewable fuels and pathways are also being received. 6. Estimating the Burden and Cost of Collection 6( a) Estimating the Respondent Burden Wedrew upon experience implementing similar regulations among the same entities to develop estimates of the burden associated with this collection. The following a ssumptions were made in estimating the burden to this collection. T he number i n each participating part y class were a result of facili ties and RI N owner registered in the RFS program in CDX
. An estimated percentage of each party t otal was used to assume how man y would submit registration corrections and updates and to see how man y new part y class registrations and CDX users to expect each ye ar. Producers and importers are required to finance and to submit to EP A an yearly attest engagement. In the last information request , respondents were required to re - register which increased the cost and hourly b urden
. From the estimates there are 11 92 participants in this collection.

 Producers of renewable fuels (300)  Importers (72)  Obligated Parties (150)  Parties who own RINs (including foreign RIN owners) (950) 6(b ) Estimating the Respondent Cost s Three labor categories are involved: managerial (includes legal and professional review), technical, and clerical. The estimates used the Bureau of Labor Statistics figures from "National Industry
- Specific Occupational Employ ment & W

age Estimate “Petroleum and Coal Products Manufacturing” (May

201 1), with a 3% annual inflation factor applied to bring the valu es to the present. Using this method, the following wages and benefits appl y b y category :
Wa ges and Benefits Managerial $67.44 per hour Te chnical $65.56 per hour Clerical $22.17 per hourDoubling for compan y overhead beyond wages and benefi ts, and for convenience, rounding up

to the dollar, gives the following rates for this I CR: To tal Employer Cost Managerial $135.00 per hour Te chnical $131.00 per hour Clerical $ 44.00 per hour It is assumed that for each hour of activity the mix wi ll be about 0.1 hour managerial, 0.7 hour technical, and 0.2 hour clerical. This gives an average labor cost of $103 per hour , which will be used in this I CR. For purchased services related to attest engagements and some items of registration, we have doubled this hourly cost to $206 in order to more accuratel y reflect the cost of a certified public accountant (CP A) or licensed professional engineer's (PE) services. There is no capitol or O&M cost associated with this collection. There is onl y respondent hourly burden cos t incurred.**Information Collection Burden by Type of Party** Table I: Producers of Renewable Fuel
Collection Activity Number of Respondents Number of

Responses per Party Total Nu mber of R esponses Ti me per

Response (hours) Cost per

Response (dollars) Total

Hours Total Cost

(dollars) 80.1416 New renewable fuels pathways at $103/hour 15 1 15 8 $824 120 $12,360 80.1450 (b)(2) Yearly attest engagements at $206/hour 500 1 500 24 $4,944 12000 $2,472,000 (d) Registration updates at $103/hour 125 1 125 2 $206 250 $25,750 New Registrations at $103/hour 25 1 25 2 $206 50 $5,150 New CDX Registrations at $103/hour 25 1 25 2 $206 50 $5,150 **TOTA LS**  **690 690**  **1247 0**  **$2,5 20,410**  Assumptions: 500 registered renewable fuel producers 25% registration updates and corrections 3% new pathway petitions by producers of renewable fuels 5% new renewable fuels producers registrations 5% new CDX registrations by renewable fuel producers**Information Collection Burden by Type of Party** Table II: Importers of Renewable Fuels
Collection Activity Number of Respondents Number of

Responses per Party Total Number

of Responses Ti me per

Response (hours) Cost per

Response (dollars) Total

Hours Total Cost

(dollars) 80.1450 (b)(1) New Registration at $103/hour 4 1 4 8 $824 32 $3,296 (b)(2) Yearly Attest Engagement at $206/hour 75 1 75 24 $4,944 1800 $370,800 (d) Registration update and Corre ctions at $103/hour 19 1 19 2 $206 38 $3,914 New CDX Registration at $103/hour 4 1 4 2 $206 8 $824 **TOTA LS**  **102 102**  **1878 $378,834**  Assumptions: 75 registered im porters of renewable fuel 25% registration updates and corrections 5% new registrations for importers of renewable fuels 5% new CDX registrations by im porters of renewable fuels**Information Collection Burden by Type of Party**  Table III - "Obligated Parties" (Including Refiners and Exporters or Renewable Fuels)

Collection Activity Number of Respondents Number of

Responses per Party Total Number

of Responses Ti me per

Response (hours) Cost per

Response (dollars) Total

Hours Total Cost

(dollars) 80.1450 (a) New registrations at $103/hour 8 1 8 8 $824 64 $6,592 (d) registration updates and corrections at $103/hour 38 1 38 8 $824 304 $31,312 New CDX Registrations at $103/hour 15 1 15 2 $206 30 $3,090 **TOTA LS**  **61 61**  **3 98**  **40,994** Assumptions: 150 companies registered as o bligated p art ies 25% registration updates and corrections 5% new obligated party registrations 10% new CDX registrations by obligated part ies**Information Collection Burden by Type of Party** Table IV - Any Party Who Owns/Intends to Own RINS (including blenders, brokers, marketers, etc.) (RIN Owners)

Collection Activity Number of Respondents Number of

Responses per Party Total Number

of Responses Ti me per

Response (hours) Cost per

Response (dollars) Total

Hours Total Cost

(dollars) 80.1450 (d) Registration updates and corrections at $103/hour 238 1 238 2 $206 476 $49,028 (e) New registrations at $103/hour 48 1 48 8 $824 384 $39,552 New CDX Registrations at $103/hour 48 1 48 2 $206 96 $9,888 **TOTA LS**  **334 334**  **956 $98,468**  Assumptions: 950 registered RIN owners 25% registration updates and corrections 5% new RIN owner registration applications 5% new CDX registrations by RIN owners**Information Collection Burden by Type of Party** Table V - Additional Items of Reporting for Foreign RIN Owners

**Collection A ctivity**  **Number of Parties**  **Number of**

**Responses per Party**  **Total Number**

**of Responses**  **Time per**

**Response (hours)**  **Cost per**

**Response (dollars)**  **Total**

**Hours Total** 

**Cost (dollars)**  80.1467 New Applications submitted to be a foreign RIN owner at $103/hour 1 1 1 1 $103 1 $ 103 Registration Corrections and updates at $103/hour 3 1 3 1 $103 3 $309 New CDX Registrations at $103/hour 1 1 1 1 $103 1 $ 103
**TOTA L**  **5 5**  **5 $**  **515** Assumptions: 10 F oreign RIN Owners in party 10% n ew foreign RIN owner applications 30% updates and corrections in Registration in CDX( c ) Estimating the Agency Burden and Cost EP A must generate company and facility

registration number(s) for new registrants and notify them of these numbers, which must appear on reports. Report formats and instructions/guidance must be prepared b y Agency personnel. Reports will be processed b y contractors and must be reviewed b y Agency personnel. Reporting parties must be contacted if there is a problem with their submission. Wehave developed forms for RF S2 reporting to include four t ypes, rather than one type, of RIN unlike the RFS1 templates. W e have provided RFS2 reporting templates as an attachment to this document. This supporting statement considers all Agency costs associated with accepting new re gistrants and new r

eports associated with RFS2, as expr essed in EP

A ICR Number 2333.02. Using the RFS1, and the RFG and anti
- dumping ICR, and other recent fuels
- related IC Rs as a guide in developing these initial estimates for RFS, we anticipate that RFS2 may require the equivalent labor of one full time GS
- 13 technical employees for a total of $1 15,000, and labor costs of $54,875 in the clerical category and $19,438 in the management category
. 1 Since we are using the CDX, some costs incurred b y the Agency will be tied to the number of registrants who send us reports. Specifically , there is an annual "subscription cost" associated with the use of CDX that is passed on to the EP A program of

fice and we estimate that registrants due to RFS2 will cost our of

fi ce approximately

$200,000 per year in 2013, 2015 and 2015. Weanticipate $266,666 in annual contract costs related to registration and reporting activities. Weanticipate IT development and testing costs at $ 600,000 divided by three ye ars to yi eld an annual cost of $200,000. Adding the following values results in an annual estimated Agency burden as follows: One GS
- 13 technical employee (full time) = $ 1 15,000 One GS
- 7 clerical worker (full
- time) = 54,875 One GS
- 15 manager (1/8 tim e) = 19,438 Annual CDX subscription fee = 200,000 Annual contract costs = 266,666 Te sting and development= 200,000 **TOT AL**  **= $855,979**  As with all items in this supporting statement, we strongl y encourage comment on the estimated Agency

burden and on the Agency activities associated with this proposed information collection.
( d) Estimating the Respondent Universe

1 These estimates are derived from "OPM Salary Table 2012
- DCB," ef fective January 2012. This table may be found at http://www

.opm .gov/oca/06tables/indexGS.asp. The extreme of step 10 was assumed for all categories. We have assumed a full
- time GS
- 7 clerical worker, one full
- time GS
- 13 technical worker, and a GS
- 15 manager working one
- eighth of his/her time managing this project (0.125). All values were multiplied by 1.6 (w hich is a common factor utilized in ICRs to account for overhead costs). W e rounded the resulting dollar value to the nearest thousand. This cost is per year
.Wewere able to estimate the number of regulated entities drawing upon experience

regulating the same or similar entities. ( e ) Bottom L ine Burden Hours and Costs From the tables, we estimate the following annual totals: **TOT AL**  **NO. OF RESPONDENTS:**  **11 92**  **TOT AL**  **NO. OF RESPONSES:**  **11 92**  **TOT AL**  **BURDEN HOURS: 15,707**  **TOT AL**  **COST TO RESPONDENTS: $ 3,03**  **9,221** ( f ) Reason for Change in Burden There is a sharp decrease of 43,026 hours in the total estimated respondent burden compared to the IC R currently approved b y OMB. The total burden hours will decreased from 58,733 to 15, 707 and the total number of responses from 7396 to 1 192, both notable drops. This decrease was caused b y members in the obligated parties once registered not being require d to re - register their companies in this renewal. New registrations are required if a company aquires another or when a new company enters into a party

. The requirements of the current members in the obligated party are to submit updates and corrections t o their current registration when needed in CDX. The number in the respondent universe will decreased in all categories for the obligated parties thus lessoning the reporting burden for its members. 6(g) Burden Statement The annual public reporting and recordkeeping burden for this collection of information is estimated to be 1 3 hours per response (total number of hours divided b y total number of responses). Burden means the total time, ef fort, or financial resources expended b y persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency . This includes the time needed to review instructions; develop, acquire, install, and utilize technology and sy stems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to comply with an y previously

applicable instructions and requirements; train personnel to be able to respond to a collection of inform ation; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it disp lay s a currently

valid OMB control number. The OMB control numbers for EP A's regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. To comment on the Agency 's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EP A has established a public docket for this I CR under Docket ID number EP

A
- HQ
- OAR
- 2005
- 0161, which is available for online viewing at www.regulations.gov,or in person viewing at the Air Docket in the EP A Docket Center inWa shington, DC (EP A/DC). The docket is located in the EP A We st Building, 1301 Constitution Av enue, NW

, Room 3334, and is open from 8:30 a. m. to 4:30 p.m., Eastern Standard Time, Monday through Friday

, excluding legal holiday s. The telephone number for the Reading Room is (202) 566
- 1744, and the telephone number for the Air Docket is (202) 566
- 1742. An electronic version of the public doc ket is available at www.regulations.gov. This site can be used to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically

. When in the sy stem, select “search,” then key in the Docket ID Number identified above. Also, you can send comments to the Of fice of Information and Regulatory A ffairs, Of

fice of Management and Budget, 725 17th Street, NW , Wa shington, D.C. 20503, Attention: Desk Of ficer for EP

A. Please include the EP A Docket ID Number EP

A
- HQ
- OAR
- 2005
- 0161 and OMB Control Number 2060
- 0637 in an y correspondence.

.